Why I'm Buying MercadoLibre & Sea Limited Right Now

AI-generated source summary

The analysis focuses on MercadoLibre (MELI) and Sea Limited (SE), identifying them as 'positive-sum institutions' that create value by expanding underserved markets and then capturing a growing share. Both companies have exhibited strong revenue growth over the years, with MELI's revenue growing by over 30% YoY and SE showing substantial year-over-year growth in its core segments (Shopee, Money, Garena). The thesis is that despite recent market downturns and suppressed short-term margins, their long-term growth and market dominance, particularly in e-commerce and fintech for MELI, and a diversified ecosystem for SE, position them for significant future value creation. The current market pricing is considered potentially 'mispriced' due to short-term pressures, while the underlying business fundamentals and expansion into underpenetrated markets suggest a strong long-term growth trajectory. The core argument is that these companies are building robust, self-reinforcing ecosystems that will drive future profitability and shareholder value, making their current valuations attractive for long-term investors.

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